Vascon Engineers LimitedVascon Engineers Limited

Analyst Meet PresentationAnalyst Meet PresentationAnalyst Meet PresentationAnalyst Meet PresentationQ2 FY11Q2 FY11

Agenda

1. Group Overview

3. Financials highlights

2. Key highlights for the quarter

3. Financials highlights

4. Project highlights

6. Annexure2

5. Acquisition

Company Overview

� Commenced operation in 1986 and present in the

� Unique Business Positioning

� EPC� Real Estate� Strategic Investments – Hospitality Sector

Real Estate Strategic Investments EPC

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Real EstateKey to scalability and value

unlocking, building on the

strong EPC edifice to give it

the cutting edge

Strategic Investments

Driven by opportunities

arising from the growth

prospects of the company’s

EPC and Real Estate

businesses

EPCReputation of a Company

which provides the highest

quality for the right value and

in a timely manner.

Key Differentiators

Broad based skill sets of Qualified & Experienced management team

High standards of corporate Governance and Transparency

Strong and diversified Revenue model

Timely execution of projects / Efficiency in delivery schedules

Competitive edge on account of EPC expertise

Technological innovations

Owned equipment base – leads to better utilization rates and reduced time for deploying resources

Transparency in accounting methods adopted and business dealings

Aspiration to make a significant impact across business segments – driving growth

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Key highlights for the quarter

1. Signed agreement to develop township at Oragadam, Chennai

Company plans to develop a 105-acre township, predominantly residential, at

Oragadam on the outskirts of Chennai in four phases with total saleable area of

over 10 million sq. ft.

The project will be developed in a joint venture with Balakh realtors and the

association will be on a revenue-sharing basis.

2. Bagged new order worth Rs. 1,332 million

3. Launched project Tulip - Phase II in Coimbatore

2. Bagged new order worth Rs. 1,332 million

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Company has bagged new orders worth Rs. 1,332 million during the last

quarter. Total EPC order book of the company stands Rs.38.5 bn. and backlog of

Rs. 26.6 bn.

Company has Launched Tulip – Phase II, a residential project in Coimbatore with

total saleable area of ~ 0.2 million sq. ft.

Key financialsKey financials

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Particulars Q2 FY11 Q2 FY10 H1 FY11 H1 FY10

Growth

H1 FY11 Vs. H1

FY10

Total Income 2253.6 2199.2 4316.9 3625.0 19.09%

Total Income - EPC 1798.8 1755.2 3765.2 2896.7 29.9%

Total Income – Real Estate 135.5 348.8 206.7 583.9

EBIDTA 301.5 287.9 568.3 509.5 11.5%

Rs. in million

Key financials – Q2 & H1 FY11

P & L (consolidated)

EBIDTA 301.5 287.9 568.3 509.5 11.5%

Profit Before Tax 218.4 207.2 424.9 349.6 21.5%

Profit After Tax 177.7 132.2 316.2 237.3 33.2%

EPS (Rs.) - diluted 1.93 1.72 3.57 3.10

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EBITDA Margin 13.4 % 13.1 % 13.2 % 14.1 %

PAT Margin 7.9 % 6.0 % 7.3 % 6.6 %

Particulars As on 30.09.10 As on 30.09.09

ROCE – annualised (%) 10.82 13.88

ROE – annualised (%) 12.22 15.04

(consolidated)

Key Ratios

Rs. in million

Total Debt (Rs. million) 2,567. 8 2,129.5

Net worth (Rs. million) 6,953.3 4,648.2

Debt: Equity ratio 0.37 0.46

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EPCEPC

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Business Model – EPC Business

Stability DriverENGINEERING, PROCUREMENT & CONSTRUCTION

� Constructing factories hospitals, hospitality properties, office andresidential complexes, shopping malls, multiplexes, IT parks andother buildings

� Strong Track Record & Reputation� High integrityHigh integrity� Highest Quality for the Right Value� Timely Completion of Projects

� Competitive Bidding to win Contracts� Recent fund raising exercise to boost prospects

� Repeat Orders from Joint Venture Partners across regions

� Forayed into Government contracts.10

Punjab

EPC (Rs mn)

Order Book: 300

Order Backlog: 230

Himachal Pradesh

EPC (Rs mn)

Order Book: 175

Order Backlog: 85Haryana

EPC (Rs mn)

Order Book: 1,264

Order Backlog: 640

Gujarat

EPC (Rs mn)

Order Book: 3180

Order Backlog: 3180

Delhi

EPC (Rs mn)

Order Book: 2,481

Order Backlog: 734

Pan-India Presence

As on 30.09.10

Maharashtra

EPC (Rs mn)

Order Book: 24,975

Order Backlog: 16,667

Karnataka

EPC (Rs mn)

Order Book: 61

Order Backlog: 0

Goa

EPC (Rs mn)

Order Book: 455

Order Backlog: 215

Tamil Nadu

EPC (Rs mn)

Order Book: 3,939

Order Backlog: 3,293

Order Backlog: 3180

Andhra Pradesh

EPC (Rs mn)

Order Book: 1,383

Order Backlog: 1,265

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Contracting Entity LocationContract

Value

Delhi International Airport –car park Delhi 2,481

TN Assembly Complex (Block-B) Tamilnadu 2,109

Ruby Mills, Dadar Maharashtra 2,074

HDIL Maharashtra 1,791

Neelkanth Palacia,Mall & Business centre Maharashtra 1,333

KONDHWA Realty Maharashtra 999

EPC – Key Projects

Rs. in million

KONDHWA Realty Maharashtra 999

Savitribai Phule Shikshan Prasarak Mandal Maharashtra 820

Neelkanth IT Park Maharashtra 759

North Town, Chennai Tamilnadu 748

BPTP - IT park Haryana 739

"Kshitij" Parmanandwadi Maharashtra 564

Villa Viviana Tamilnadu 562

Sinhgad Technical Education Society- Addition Maharashtra 536

Total Contract value of Rs. 38.2 bn. and Backlog of Rs. 26.3 bn. 12

EPC – New orders bagged during the quarter

Projects Value (Rs. Million)

Park Mansion-BPTP 328

Forest County 300

Park Serence –BPTP 197

Sinhgad School - Pune 138

Caspia Hotel 121

Tulips –Coimbatore 100

Others 148

Total 1,332

New order bagged during H1 FY11 ~ 4.32 bn

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Real EstateReal Estate

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Business Model – Real Estate

Scalability Driver

� Based on strong foundation of EPC experience ranks among the top ten buildersin India (source: Construction World publication in June 2007 )

� Expected to provide high scalability

� Cost efficient development model – Joint Development Agreements (JDAs) and

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� Cost efficient development model – Joint Development Agreements (JDAs) andJoint Ventures lowers working capital requirements

� De-Risked Business Model – by investing in properties only after gainingsignificant hands on experience from JVs and JDAs.

� Historic Land Bank purchased at low prices giving it significant scope for capitalappreciation.

� Conservative Accounting Policy

Ahmedabad

Dev. potential 2.7

Nashik

Dev. potential 1.7

Chandigarh

Dev. potential 0.3

million sq. ft.

Land bank – National Presence

Pune

Dev. potential 25.6

Thane

Dev. potential 19.0

Madhurai

Dev. potential 1.6

Aurangabad

Dev. potential 1.4

Goa

Dev. potential 0.6

Coimbatore

Dev. potential 3.3

Hyderabad

Dev. potential 0.6

Belgaum

Dev. potential 0.2

Total development potential ~ 68.6 million sq. ft. 16

Chennai

Dev. potential 11.6

Projects progress status

On going project updatesAs on 30.09.10

Project

Vista

Phase I

Willows

phase I

Forest County

phase I

Willows

Phase II

Vista

phase II

Tulip

phase I

Tulip

phase II Windermere

Type Residential Residential Residential Residential Residential Residential Residential Mix

Location Nashik Pune Pune Pune Nashik Coimbatore Coimbatore Pune

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Total saleable area (sq. ft.) 176,260 197,262 688,370 159,910 128,000 74,000 197,500 396,800

Total area sold (sq. ft) till sep 10 160873 143015 547,486 60,918 66,285 74,000 38,795 55482

% Area Sold 91% 73% 80% 38% 52% 100% 20% 14%

Total no. of apartments 126 60 386 126 112 48 112

Apartments - 62

Duplex - 21

Acquisition of GMP Technical Solutions Pvt. Ltd.

� Company has acquired 90% of GMP Technical Solutions Pvt. Ltd with the cash

outflow of Rs. 626 million

GMP has 3 divisions:

� Manufacturing: Clean rooms, office partitions, door sets, storage racks

� BMS: Integrated business management services; US FDA compliant for

pharma industry

� QA Technical Services: Validation and certification of weights and

measures

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� Acquisition to yield economies of scale. Synergy to strengthen capability to

offer turnkey solutions

The Strategic Roadmap

Expanding Geographical

presence

Expanding Geographical

presence

Expanding Industry Portfolio

Expanding Industry Portfolio

Pan Indian opportunities in

terms of strategic investments in

hospitality

Pan Indian opportunities in

terms of strategic investments in

hospitality

Fortify an Integrated

& De-Risked Model

Fortify an Integrated

& De-Risked Model

Focus on Technology

Focus on Technology

Gaining significant experience

through JDAs and JVs before entering

into land bank investments

Gaining significant experience

through JDAs and JVs before entering

into land bank investments

Thank YouThank You

For further information, please contact :

M. Krishnamurthi/ Vivek Sakharkar

Vascon Engineers Ltd.

Contact : +91 20 3056 2300

Email: mk_murthi@vascon.com

viveksakharkar@vascon.com

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AnnexureAnnexure

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Financial Statement B/S

Particulars 30-Sep-10 30-Sep-09

Liabilities

Capital 900.2 792.2

Reserves & Surplus 6,053.2 3,856.1

Total Loans 2,567.8 2,129.5

Minority Interest 69.2 74.9

Total Liabilities 9,594.9 6,854.1

Consolidated numbers

Rs. in million

Total Liabilities 9,594.9 6,854.1

Assets

Fixed Assets 2,381.9 1,028.6

Investment 832.8 836.9

Deferred Tax Asset 19.6 9.5

Net Current Assets 6,360.6 4,979.1

Total Assets 9594.9 6854.1

Disclaimer

•This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vascon Engineers Limited (the

“Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or

subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever.

No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about

the Company.

•This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company

makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness,

fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the

information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly

excluded.

•Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects

that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performancethat are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance

and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include,

but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the

industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of

growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s

market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or

achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no

obligation to update any forward-looking information contained in this Presentation. Any forward looking statements and projections made by

third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements

and projections.

•No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”).

Accordingly, unless an exemption from registration under the Securities Act is available, the Company’s securities may not be offered, sold,

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regulation S under the Securities Act).

•The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation

comes should inform themselves about and observe any such restrictions.

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